LNG production revenue enhancement

Abstract

Liquefied natural gas (LNG) production involves complex processes that differ from conventional oil and gas production. That complexity, however, can be harnessed to drive improved business performance. Parameters for optimisation include plant reliability, capacity and yield. In combination, these parameters may deliver a non-linear upside to production operations at minimal cost. This paper shall therefore review a method for assessing the existing and potential performance of a hypothetical LNG facility with a focus on maximisation of gross revenue. Drawing on various case studies, several key process steps shall be reviewed in detail using both fundamental engineering and managerial economics. Optimisation of a single LNG train shall be reviewed to show the cumulative impact of executing a combination of individually small process improvements. The improvements reviewed span the spectrum from setpoint and alarm changes to in-depth technical studies and physical modifications. The process for planning, studying and testing enhanced performance is also discussed. The outcomes from a combination of these initiatives are summarised, including a forecast of the potential for further continuous improvement as well as real world examples.